Bonds Expected to Continue Their Run, At Least for Now

Is the bond bubble ready to burst? Well, that depends on whether it ever existed in the first place.

Bonds, the traditional safe harbor, have enjoyed a helluva run amid one of the worst bear markets in history. During the last three years, a ton of cash has poured into fixed-income vehicles such as bond funds, which have capitalized on the fear generated by a precipitous decline in stocks. Assets under management in bond funds have increased 51% from $792 million in March 2000 to $1.2 trillion at the end of February, according to the Investment Company Institute.